House committee substitute to the 2nd edition makes the following changes. Changes act’s short and long titles.  

Removes the entirety of the content of previous Section 1, which contained amendments to 160D-601(d)-(e) (procedures for adopting, amending or repealing development regulations-down zoning); Section 6, which contained amendments to GS 160D-109 (conflicts of interest); Section 7, which contained changes to GS 160D-109 (conflicts of interest); Section 16, which contained changes to GS 160D-912 (outdoor advertising); Section 17, which contained to GS 160D-912.1 (on-premises advertising); Section 25, which added new GS 160D-1406 (establishing civil liability for a decision-making board in certain instances); Section 26, which amended GS 63-31(a) (airport zoning regulations); Section 27, which amended GS 63-36 (acquisition of air rights); Section 28, which added a new subsection to GS 120-36.7 (concerning legislation affecting housing affordability) and added new GS 159-42.2 (requiring a fiscal note for ordinances impacting housing affordability); Section 31, which revised GS 136-131.5 (nonconforming signs); Section 32, which revised the catch line of GS 136-131; Section 33, which amended GS 136-133.1; Section 34, which amended GS 130A-31(h); and Section 35, which amended GS 160A-58.1(d). Makes conforming organizational changes to account for deleted content.

Section 1 (was, Section 2).

Specifies that if conflicts exists between the general provisions pertaining to local planning and development regulations in GS Chapter 160D, then the specific provision only applies if the General Assembly has not enacted legislation that clearly shows a legislative intent to repeal or supersede the more specific provision.  Extends the dates that GS Chapter 160D is effective on the specified vested rights as set forth in GS 160D-111 from January 1, 2020, and June 19, 2020, to October 1, 2025.

Section 2.

Adds new term, actual and legitimate needs of the community, meaning demonstrable requirements or deficiencies within a local jurisdiction that are substantiated by objective data, recognized standards, or credible assessments. Instructs that these needs must not be speculative, arbitrary, or a matter of mere preference or convenience, but rather must reflect a bona fide necessity consistent with lawful governmental purposes and responsive to reasonably foreseeable conditions expected to affect the community.

Section 3.

Changes the standard where a hearing is not required under GS 160D-107 as well as that where a development moratorium does not apply under the statute from “absent an imminent threat to public health or safety” to “absent an imminent threat to the actual and legitimate needs of the community.”

Section 4.

Removes provisions from GS 160D-108(h) that would have made the subsection’s process to claim a vested right applicable to the claiming of vested rights under GS 160D-108.2.

Section 5.

Replaces references to protecting the “public health, safety, and welfare” to protecting “actual and legitimate needs of the community” in GS 160D-108.1 (vested rights – site-specific vesting plans).  

Section 8 (was, Section 10).

Removes provisions in GS 160D-403 (administrative development approvals) expanding the vested rights that are not limited by the statute to include those in GS 160D-108.2.

Section 10.

Replaces references to promoting the “public health, safety, and general welfare” to promoting the “actual and legitimate needs of the community” in GS 160D-701 (purposes).

Section 11 (was, Section 12).

Changes one of the exemptions to provisions barring local governments from requiring installation or improvement of sidewalks for residential, commercial or school property under GS 160D-702 (grants of power to local government to adopt zoning regulations) to require the local government to demonstrate through credible evidence that the sidewalk will be connected to a planned adjacent sidewalk, as described (was, local government just had to believe that would be the case, as described). Now requires the government to show that there is a rational and substantial relationship between the zoning law at issue and (1) the local government’s comprehensive plan and (2) the actual and legitimate needs of the community (was, had to show rational and substantial relationship between law and health, safety, and welfare of the public). Makes technical changes.

Section 12 (was, Section 13).

Removes provisions in GS 160D-703(a2) (concerning permitted uses in counties) that specified allowed uses in counties with populations up to 274,999. Replaces references throughout GS 160D-703 to the “most recent decennial federal census” with the “2020 federal census.” Specifies that counties must allow by right the sitting of no fewer than six dwelling units per acre in counties with a population of 275,000 or more (previously, no reference to “allow by right”). Removes requirement that the areas governed by cities under GS 160D-703(a3) (permitted uses in cities) have to contain public sewer connections. Removes provisions: (1) specifying allowed uses in a city with a population of 19,999 or less and (2) allowing minimum dwelling unit requirements to be met by duplexes, triplexes and quadraplexes in areas zoned for residential use in cities with a population of 125,000 or more. Increases the required population for residential areas in a city that must allow for the citing of no fewer than five dwelling units per acre from between 20,000 and 124,999 to between 55,000 and 124,999. Changes the exemption for cities with a population of 125,000 or meeting the specified requirements from an exemption from the specified local design standards to an exemption under building design elements (defined). Clarifies that nothing in GS 160D-703(a2) or (a3) should be construed to expand, diminish, or alter the scope of authority for planning, development, or land use regulations set forth in GS Chapter 143 or Chapter 113A. Requires a local government asserting that any land is subject to those provisions to substantiate its determination with facts and information that a reasonable person would accept in support of its conclusion. Specifies that GS 160D-703(a2) and (a3) apply regardless of whether the dwelling units are located on multiple adjacent lots or a single lot. Replaces references to a rational relation to the “health, safety, and welfare” to the “actual and legitimate needs of the community.”

Section 15.

Replaces references to substantially promoting the “public health, safety, and welfare” to substantially promoting the “actual and legitimate needs of the community” in GS 160D-804 (contents and requirements of regulation). Makes technical changes.

Sections 18.

Replaces references to “health and safety” to the “actual and legitimate needs of the community” in GS 160D-905 (amateur radio antennas).

Section 19.

Replaces references to protecting “the public health, safety, and welfare” to reflecting the “actual and legitimate needs of the community” in GS 160D-1006 (a6) (concerning descriptions in development agreements).

Section 22.

Replaces references to “public health and welfare” with “the actual and legitimate needs of the community” in GS 160D-1208(b) (housing appeals boards).

Section 24 (was, Section 23).

Expands the definition of development permit in GS 143-755 to include legislative approvals, including those that are unwritten and pertaining to conditional zoning. Includes conditional zoning in term land development regulation.

Section 25 (was, Section 24).

Appears to narrow the standing provisions of GS 160D-1403.1 incorporated into GS 160D-1403.3 (private remedies) so that only GS 160D-1403.1(b)(2)-(4) are incorporated into GS 160D-1403.1 (was, all of GS 160D-1403.1(b)).

Section 25 (was, Section 26).

Amends GS 6-21.7 to require courts to award reasonable attorneys' fees and costs to a party who successfully challenged acts of a city or county (was, the member of a decision-making board) under new GS 160D-1403.1 (was, GS 160D-1406).

Section 30 (was, Section 37).

Modifies the way available capacity is calculated under GS 162A-1001 (definitions under new Article 12-water and sewer allocations) so that it also must subtract any local government project allocation from a facility’s capacity. Makes organizational changes. Clarifies that a project is a development (defined) for which the described services are requested that is also within the facility’s service area. Adds new terms local government project and local government project allocation.

Removes the requirement under GS 162A-1002(c), that requires a local government approving an allocation to provide the applicant with the amount of the allocation reserved.

Section 30.1

Effective July 1, 2025, and applying to permit applications received on or after that date, increases the fee for coverage under a construction or industrial National Pollution Discharge Elimination System (NPDES) general permit from $100 to $125 under GS 143-215.3D.

Section 32 (was, Section 39).

Specifies that unless specifically stated otherwise, the provisions of the act do not affect any right accrued or vested prior to its enactment.